The question “How to find investments for a startup?” asked more and more entrepreneurs with innovative ideas … After all, it’s no secret that in recent years the number of stories about successful startups that have released their product or service and made it popular has grown rapidly.
We constantly hear that talented people come up with this or that invention, which is sold on a huge scale.
Perhaps you also have an idea to develop something innovative? In this case, you can contact KLONA and we will help you implement it. Call: +38 (044) 338 88 02 or write to email@example.com
(Flash for iBlazr Smartphone)
Obviously, money is needed to present your product to the world. Therefore, startups are actively looking for investors for their projects. And since no one knows in advance which of them will “shoot” and become the next Petcube or iBlazr in their niche, many investors are actively looking for interesting ideas that have a perspective … This explains the increased investment activity in the world of technology that can be observed in recent years. If earlier the term “startup” could be applied to developers sitting somewhere in Silicon Valley, now it is actively used, including in many cities of Ukraine.
Do you also have an interesting idea for a new device? Contact KLONA, and we will be happy to help you implement it. Call: +38 (044) 338 88 02 or write to firstname.lastname@example.org
Investments in start-up projects: who makes them and why?
(Electrostatz headphones released via Kickstarter)
Considering the huge number of interesting online / offline start-up projects around the world, many investors have put the process of financing talented entrepreneurs on stream by organizing special incubators and accelerators … With their help, the process of selecting ideas that deserve an investment of time, knowledge and money has become much larger. They run special contests allowing you to compare several startup ideas and select the best …
The difference between an accelerator and an incubator, if we are talking about where to get investments for a startup, lies only in the stage of development and the state of the business idea.
People get into an incubator if they have a vision of the future business, a certain plan, a team of people who want to implement it. Here they are helped, provided with a working office, all the necessary tools and funds for further development. In the incubator, the team has the opportunity to make acquaintances and gain new knowledge …
The most famous incubators in the world are CoCoon operating in Hong Kong, SunShine Suites (New York) and T-Hub operating in the Indian market.
Into the accelerator startups are selected at later stages of their development. These are companies that already have some work experience, their own office and the minimum that is necessary to attract customers. In such programs, the startup team will receive training, help in business, and the provision of additional resources. Examples of the most famous accelerators in the world are Y Combinator , Seedcamp and TechStars …
Find investment for a startup in Ukraine: help from incubators
It’s not just the US, India, or China that have programs to help startups. Ukraine also boasts a number of accelerators and incubators investing in useful and interesting ideas.
1 incubator 1991.vc
This is a project of the SocialBoost team, which regularly organizes hackathons for IT specialists. The incubator pays attention to solutions for urban management, analytical systems, tools for the provision of electronic services to the population. The project supports startups whose idea is to changing life in the country for the better offering mentoring support, investments, PR. The project’s alumni include Agrieye, Navizor, ECOisme, Maitreya …
The company works with projects at an early stage, helping to build a business and attract first buyers. The accelerator works with the venture capital fund GrowthUp +, which invests in early stage startups. The portfolio includes projects such as Zakaz.ua, Budgy, Fly Elephant, Coding Ninjas other.
3. Development center for tech companies TCDC
The center works as an accelerator, providing assistance to budding startups – their residents. TCDC offers residency to technology companies that receive their first income (from $ 1000 per month ).
The center provides office rent at a minimum cost, as well as compensation for the costs of participating in educational programs; advises on obtaining investments and entering foreign markets. One of the Center’s residents is the Billboards.com.ua project …
Another opportunity to implement an interesting startup idea is provided by EastLabs. Talented entrepreneurs, whose ideas will be recognized as promising, will provide an initial capital of $ 20,000 for marketing … In return, EastLabs will ask for a 15% stake in the company. In addition, the program includes mentoring and training on how to improve the product in the future. The project helped the Throw the Pig Startup to develop.
(Kwambio 3D Model Exchange)
The WannaBiz Investment Program invites people to apply for get money to implement your startup idea … Here they allocate from 20 to 50 thousand dollars to the developers of promising projects. It is enough to fill out an application and send a presentation of your idea on the company’s website. WannaBiz has already helped services Kwambio, AdTena, ClickGanic and so on.
This is a Ukrainian project providing indirect support to start-up tech companies. They will help you find investments for a startup at international conferences, provide premises for team work, provide training and support. iHub has become a platform for starting projects such as AstraFit, Preply, Capitan …
This service is somewhat different from those presented above in its format. It works in the form of a catalog of business projects, in which any private investor can invest. It is both startups and self-operating businesses in online and offline spheres. The payment of the attracted capital is carried out using bank cards, online payment systems and even through Bitcoin. In return, private investors receive dividends from their investments.
Searching for investments in a startup abroad
Many Ukrainian startups, realizing the importance and enormous potential of their idea, used foreign rather than domestic incubators to attract investment. This allowed them to implement their projects at the international level, gaining access to the markets of other countries.
If you would also like to gain experience in communicating with foreign incubators and accelerators, we recommend that you familiarize yourself with the list of some foreign investment programs for a start-up business.
This platform is a major player in the global startup market thanks to its investment portfolio. AlmazCapital has funded projects such as CarPrice.ru (Russia) and Petcube (Ukraine). The amount of investment in the idea of Ukrainian developers of an invention for caring for pets, as if following this instruction , amounted to a record $ 2.6 million. The company constantly accepts inquiries from entrepreneurs who have good ideas.
Accelerator Starta constantly holds competitions to select the best ideas from all over the world and their further funding. Ukrainian companies are no exception. So, startups Bnesis, Send pulse and Cardiomo Care received $ 130,000 of investments for a share of 7% transferred into the ownership of Starta.
This accelerator was founded by Russian entrepreneurs and operates in the Russian Federation and the United States. Its task is education and consultation of aspiring entrepreneurs, assistance in the implementation of their ideas … The project accepts applications from all countries. If you still do not know how to attract investment in a startup, you can apply to the Laboratory, take an educational course and get the opportunity to meet investors.
Another interesting opportunity for Ukrainian entrepreneurs is participation in the Kazakh business accelerator TechGarden. The company calls itself “Kazakh Silicon Valley”; its main task is to organize interaction between startup founders, researchers and investors. At the same time, it may be of interest to Ukrainians as well, since accepts projects from Kiev into its ranks.
In fact, there are a huge number of large foreign incubators and accelerators that are ready to consider your application. If your idea meets certain criteria, you can always get into projects like Y Combinator … The geographic location of the startup team is not a huge issue for such organizations.
Finding startup investments using crowdfunding
Another effective source of funding that can help a startup is crowdfunding … The term comes from the English phrase “crowdfunding”, which translates as “ crowd sponsorship ”.
This method of raising capital is more suitable not for a service or a company, but to implement the idea and release the product : shooting a movie, recording an album, developing a new device and the like.
If you are interested in the production of an electronic device, you can order its creation from KLONA. We are professional we are engaged in modeling and visualization , the creation of industrial design and the release of products of any complexity.
Call us and ask more: +38 (044) 338 88 02
You can leave a request at email@example.com
The concept of crowdfunding is as follows: the author of an idea places it on a special resource. This is done in order so that potential donors become familiar with the idea and understand its importance and value … It also indicates the amount required for the idea to come true, becoming something real: a movie, a book or a gadget. Private donors seeing how much money has already been collected and how much remains to collect , if desired, make a small contribution to support this idea. Instead they can get a thank you, a souvenir or even a copy of a finished product, if the campaign is successful. An important condition is the presence finished prototype of the invention , for which funds are collected.
(The Flow computer controller)
There are many crowdfunding platforms around the world that allow you to raise funds in this way. If you are interested in attracting investment in a startup, you should think in advance about what product will be presented and how it can be useful to potential sponsors …
Where to get investment for a startup? Ukrainian crowdfunding platforms
In our country, there are only 2 full-fledged services for raising funds for the implementation of interesting ideas:
The first project differs in that the participant has the right to receive money even if the specified amount was not collected the first time. The second, in turn, does not allows organizers receive money if the amount of collection has not reached the desired mark … In addition, Spilnokosht accepts exclusively socially oriented projects that fulfill an educational function or carry cultural value.
When launching a campaign on Ukrainian platforms, you need to understand that the amount of fundraising will be much less than when interacting with foreign crowdfunding resources.
(Indiegogo sponsored Antbo robot)
Attracting investment to a startup using foreign platforms
Speaking of overseas crowdfunding, one cannot help but recall Kickstarter and Indiegogo. These two programs are considered the most popular in the world. By participating in them, you can raise enough funds to implement your idea. For example mentioned above Petcube raised $ 200,000 on Kickstarter. True, the Ukrainian projects face a number of obstacles that should not be forgotten.
If it’s easy enough to start working with Indiegogo or Crowdrise.com, then with Kickstarter, being a native of Ukraine, it is legally impossible. It is necessary that the campaign is registered by a citizen of the United States or Canada (or a number of other developed countries in which the company is represented).
However, this did not prevent Ukrainian startups FORCEemotion , Petcube, Phonster, KrakenFix, GreenNanny, Planexta, GearEye and others have successfully raised the necessary funds to launch their products on the mass market.
The first of the mentioned, a startup of Kiev students FORCEemotion, ordered industrial design from KLONA … On Kickstarter, 185 users supported them with over $ 30,000.
You can also search for investments in a startup on the Russian platform. Planeta.ru where applications from all over the world are accepted. You can also submit an idea on an international service. GoGetFunding … There is also a Patreon open to any country; however, the service is suitable exclusively for a creative or media project.
The experience of the Ukrainian team that released toy Hyko to teach children how to save … The product was originally aimed at the Dutch market, where they care about saving water, electricity and heat in the house; therefore it was submitted to the local crowdfunding platform Doorgaan.nl. The toy has successfully collected more than 65 thousand euros …
(Hyko Bear Toy)
Obviously if you are interested in attracting investment in a startup , you can safely use intermediaries to present your product on foreign platforms.
We are looking for investments in start-up projects directly
When working with crowdfunding or business accelerators, it is important not to forget about the possibility of finding a direct investor in your project – a person who will believe in the success of your idea and give money. For this, there are specialized communities and business forums that should also be addressed …
- portal StartUp.ua ;
- project Inventure.com.ua ;
- forum Biznet.kiev.ua ;
- community MMGP.ru ;
- area B2B-UA.com …
The list goes on. Each of the designated resources has a different audience, but they all bring together people who are interested in providing and receiving capital for a business.
Examples of successful projects that managed to find investments for a startup can be found on the Startup.ua resource:
- digital content selling service InTubus (raised $ 300,000);
- professional shooting equipment rental company Frame RENTAL ($ 200,000);
- a tool for working with the target audience on mobile devices Appinion ($ 150,000) and others.
(Simple and Effective: $ 27,000 LoudHorn Bike Signal)
If you have an interesting the idea of developing an electronic device that becomes commercially successful and in demand, contact KLONA …
Call: +38 (044) 338 88 02 or write to firstname.lastname@example.org